WTO says Kiwi apples could enter Aussie markets
The World Trade Organization (WTO) ordered the Australian government to revise its stringent restrictions on imported New Zealand apples, arguing that the measures were inconsistent with scientific evidence.
In its ruling published on Monday, the WTO suggested that "that the Dispute Settlement Body request Australia to bring the inconsistent measures into conformity with its obligations."
New Zealand-grown apples were banned by Australia from entering the county in the 1920s as a measure to prevent the fireblight apple tree disease from spreading and after some decades of restrictions, conditional importations were eventually permitted in 2006.
However, New Zealand complained that the Australian government may have lifted the ban but it enforced a very strict regulation that apple producers were discouraged by the uneconomic costs of shipping their produce into the country.
Backed by scientific research, New Zealand maintained that the apple disease is not carried by hygienic and mature apples.
In 2007, the country requested the WTO to fix the trade dispute and in a subsequent ruling, the trade body affirmed New Zealand's position and urge Australia to revisit the scientific and risk assessments it raised in enforcing the restrictions questioned by New Zealand.
The WTO argued that under its plant and human health regulations, "any restrictions on trade must be based on a proper assessment of the risks using internationally recognised methods, as well as 'relevant' scientific evidence."
The new ruling is poised to benefit New Zealand apple growers by exporting their products to Australia, which the NZ government has estimated could generate revenues of up to $NZ50 million or $A39.15 million.